UK 2028 Inheritance Tax
UK 2028 IHT: NRB £325k + RNRB £175k = £500k max per person, £1m per couple. 40% rate above. Charitable bequests 10%+ qualify for 36% reduced rate.
| Estate value | — |
| Total allowance (NRB+RNRB+TNRB) | — |
| Taxable estate | — |
| Tax rate | — |
| UK 2028 IHT | — |
UK 2028 Inheritance Tax: Nil-Rate Band £325,000 + Residence Nil-Rate Band £175,000 = £500,000 per individual. Doubled to £1m for surviving spouse via Transferable NRB. 40% above. Reduced to 36% if 10%+ of net estate goes to charity. RNRB tapers £1 for £2 above £2m estate.
Frozen Thresholds Until 2030
NRB £325,000 frozen since 2009 — 16+ years of fiscal drag. RNRB £175,000 frozen since 2020-21. Both extended frozen through 2029-30 (per Budget 2024). HMRC IHT receipts hit record £8bn/year as more middle-class estates pulled into IHT. 1 in 20 estates now pay IHT.
RNRB Taper at £2m
Estates over £2m: RNRB tapers £1 per £2 above £2m. Fully gone at £2.35m (single) / £2.7m (married). Trust structures + lifetime gifting to keep estate below £2m can preserve full RNRB.
36% Charity Rate
If 10%+ of net chargeable estate goes to charity, rate drops from 40% to 36%. Net benefit: charitable bequest of 10% can leave heirs MORE than no charity — the 4% rate drop more than offsets the charitable gift in some configurations. Plan with deed of variation if family agrees.
7-Year Gifting Rule
Gifts more than 7 years before death = outside estate. 3-7 year = tapered (Potentially Exempt Transfers). £3,000/year annual exemption + small gifts £250/person + wedding gifts + normal expenditure out of income all separately exempt. Maximize annual giving early.
Last updated May 2026. Sources: HMRC IHT.